At Peninsula Capital, the Boss's Son Had to Pass a Modelling Test

By Daniel Okafor

Javier Prado Benítez joined his father's firm, Peninsula Capital, only after a formal recruitment process that included financial modelling and a presentation to the investment team. He got the job. But the son of Founding Partner Borja Prado Eulate says his five years at J.P. Morgan, including a stint in Mexico, were the real credential. Without that grounding, he reflected, "I wouldn't have been respected inside".

He made the remarks at a recent Lombard Odier event in Madrid dedicated to family businesses and succession. He spoke alongside his father, now an Investment Director at Peninsula Capital, with Xavier Bonna, Managing Partner at Lombard Odier. Marie-Christine von Pezold, Independent Family Governance consultant at Lombard Odier and Director of the Family Business Network Switzerland, moderated. Many guests attended with their adult children.

What does the father expect from his children?

Borja Prado Eulate said preparing his children for the future began without a predetermined career path. "I tried to prepare them for life," he explained. Much of his own career involved managing businesses for third parties, which he distinguished from inheriting an established family company. He expected his children to gain experience independently, starting with summer jobs during university, while becoming familiar with the family's properties and investments.

He acknowledged a tension. In seeking to avoid any suggestion of favouritism, he had sometimes placed excessive demands on his children. Communication was central to his approach: he discussed decisions with them from an early age, before they could fully understand the issues, and paired openness with an expectation of discretion about family conversations.

He also credited his wife with the family's cohesion. While business travel consumed his time, she kept time together a priority. Javier recognised her influence in how he treats colleagues at different levels of the organisation. "I learned it from her," he said.

Is family membership a job qualification?

No, at least not at Lombard Odier. Xavier Bonna described a comparable principle at the bank: membership of a founding family offers no entitlement to employment or partnership, and family members must first gain professional experience elsewhere. "There is absolutely no special treatment," he explained.

His own career followed that rule. He joined Lombard Odier through an open position in Belgium in 2016, nine years after his father's retirement. His father had not pushed him toward any role at the bank, and becoming a Managing Partner was not his objective when he applied. Selection for partnership requires the agreement of the existing Managing Partners.

Reporting lines matter too. Borja noted that Javier does not report directly to him. Marie-Christine von Pezold recommended avoiding direct reporting lines between relatives where possible, so professional assessment does not become inseparable from the parent-child relationship.

How much rope should parents give?

Javier illustrated the answer with a family property in Portugal that he and his sister help manage. After appointing someone to oversee the estate, they found their supervision had been insufficient. Their father left the problem to them. As Javier recalled his response: "Okay, fix it". They replaced the individual and took a more active role. Their mistake did not cost them the responsibility.

Borja's advice to parents was to share what they had learned while allowing the next generation to take risks and accept the consequences. In his words, "let them fly a bit". Javier added that investing his own earnings taught him the effort required to build wealth and sharpened his contribution to family investment discussions.

Disagreements persist. Javier described differences among siblings and between generations, tied to their stages of life; his brother, whose career lies outside the shared professional environment, helps balance viewpoints. Xavier said his siblings have distinct appetites for risk, retaining some shared investments while managing other assets independently.

What turns intentions into governance?

The Prado family holds regular meetings on shared assets, complemented by longer gatherings twice a year. Borja, who advises other families, said arrangements must fit each family's circumstances and culture. "Every family is different," he observed. Marie-Christine emphasised that a written framework has limited value if relationships and decisions do not follow it.

Lombard Odier's Family Programme first helps families agree a family charter setting out principles, expectations and governance arrangements, then works with the family's lawyers to translate provisions into legal structures such as a shareholders' agreement; the charter itself is not legally binding. Xavier stressed early conversations with the next generation about wealth, including open discussion of mistakes, and confident engagement with bankers, lawyers and trustees. The objective, as the bank frames it, is to prepare both the transfer of responsibilities and the people who will assume them.